Fortune Brands InnovationsLTS:0IRN -0.20%69 ROE % is 4.08% as of Mar. 2026, which is 78% below its 10-year median of 18.91. GuruFocus rates LTS:0IRN with a GF Score™ of 69/100 and a GF Value™ of $66.67 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,738 Construction companies, Fortune Brands Innovations ranks better than 67.89% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Products & Equipment subindustry, Fortune Brands Innovations's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fortune Brands Innovations ROE % vs Construction Industry
For the Construction industry and Industrials sector, Fortune Brands Innovations's ROE % distribution charts can be found below:
* The bar in red indicates where Fortune Brands Innovations's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Fortune Brands Innovations (LTS:0IRN) has a ROE % of 4.08% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Fortune Brands Innovations and its competitors. This is 78% below median its historical median of 18.91. Over the past decade, Fortune Brands Innovations' ROE % has ranged from 11.54 to 26.66. According to the industry distribution chart, Fortune Brands Innovations ranks #558 out of 1738 companies in the Construction industry, placing it in the top 32.1%.
Is Fortune Brands Innovations' ROE % too high?
Fortune Brands Innovations' current ROE % of 4.08% is 78% below median its 10-year median of 18.91. Over the past 10 years, this metric has ranged from a low of 11.54 to a high of 26.66. The Construction industry median ROE % is 6.72. Fortune Brands Innovations' value of 4.08% is 39.2% below this industry median. Based on the distribution chart, Fortune Brands Innovations ranks #558 out of 1738 companies in the Construction industry, which is above the industry midpoint. Overall, Fortune Brands Innovations has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fortune Brands Innovations' ROE % compare to LPX and TREX?
According to the Construction industry distribution chart, Fortune Brands Innovations ranks #558 out of 1738 companies for ROE %. This puts Fortune Brands Innovations in the upper half of its industry. The industry median ROE % is 6.72. Fortune Brands Innovations' value of 4.08% is 39.2% below this benchmark. Historically, Fortune Brands Innovations' own ROE % has ranged from 11.54 to 26.66 over the past decade. While the company's 10-year median is 18.91 vs. the industry median of 6.72, Fortune Brands Innovations has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fortune Brands Innovations's current ROE % of 4.08% is 39.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Fortune Brands Innovations and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortune Brands Innovations's current ROE % is 4.08%, which is 78% below median its own 10-year median of 18.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortune Brands Innovations stock overvalued right now?
Based on GuruFocus' analysis, Fortune Brands Innovations (LTS:0IRN) is currently considered Significantly Undervalued. The stock's GF Value™ is $66.67, compared to a current price of $45.84 — trading 31.2% below its estimated fair value. The current ROE % is 4.08%, which is 78% below median its 10-year median of 18.91 and 39.2% below the Construction industry median of 6.72. Fortune Brands Innovations' overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Fortune Brands Innovations (LTS:0IRN), the current ROE % is 4.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fortune Brands Innovations (LTS:0IRN) Overvalued in 2026?
Based on GuruFocus' analysis, Fortune Brands Innovations stock appears to be undervalued.
The current stock price of $45.84 is trading 31.2% below its estimated GF Value™ of $66.67.
GuruFocus considers Fortune Brands Innovations to be Significantly Undervalued.
Key valuation signals for LTS:0IRN:
ROE %: 4.08% (78% below median its 10-year median of 18.91)
GF Value™: $66.67 vs. price of $45.84 (31.2% below fair value)
Industry Position: 39.2% below the Construction median (#558 of 1738)
No single metric tells the full story. See the LTS:0IRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortune Brands is a US-based homebuilding products company that sells building-related products serving R&R and new construction markets. The company operates in three segments: water, outdoors, and security. Water innovation, including plumbing fixtures and faucets, accounts for around 55% of total sales and features brands such as Moen, House of Rohl, and Aqualisa. The outdoors segment includes decking, railing, and doors and makes up 30% of total sales, featuring brands such as Larson, Fiberon, and Therma-Tru. The security segment, which includes smart residential padlocks, accounts for the remaining 15% of sales and features brands such as MasterLock, SentrySafe, Yale, and AmericanLock.
69GF Score
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